|
 |
Parents: help your kids out of the nest without breaking their
nest-egg…or yours
Now that you’ve seen your child’s financial aid offer, are you asking,
“Where’s the rest?” Are you
wondering how to cover those “other” expenses…the ones beyond tuition
and fees, or room and board?
Or are you just a little bit concerned about the debt your kids will be
saddled with when they graduate?
The Federal Parent Loan, or PLUS Loan, may be just what you’re looking
for. Here’s why:
- PLUS is the parent’s loan. PLUS stands for Parent Loan for Undergraduate
Students. It’s a federally insured loan parents can borrow for their children’s
educational expenses.
Some families may feel differently about this, but PLUS helps kids get
off to a strong start in
life with less debt. They’ll still appreciate their education, and learn
more than enough
financial responsibility repaying the loans the school awards directly
to them.
- There’s no statutory limit on the amount you can borrow.
PLUS is limited
only to the
amount of your child’s official cost of attendance, less the amount of
his or her other
financial aid. As a family, you can supplement your existing aid offer
with PLUS, or decide
to decline other forms of aid and replace them with
the PLUS.
- PLUS is affordable. Starting with the 06-07 school year, PLUS rates will
be fixed by law
at 8.5%. In a rising interest rate environment, that’s a rate you can
rely on. Right now, it’s
competitive with or better than private, alternative education loans
offered to either students
or parents, and will become
more so as those variable rate loans
continue to become
more expensive.
- You can choose not to make payments while your child’s in school. You
can request a
12-month postponement of your payments, and renew your request annually
for up
to 5 years.
- Or choose from multiple, affordable repayment plans.
A wide variety of plans is available to meet your needs. An income
sensitive plan is also available.
- Your interest may be tax deductible. Up to $2,500 of the fees and
interest you pay in any
year may be tax deductible.
- It’s easy to qualify. Most people by far who apply for PLUS Loans are
approved. While
lenders may reject an application on the basis of adverse credit
history, they don’t consider
your income or your existing debts in making a PLUS credit decision.
-
PLUS leaves your assets alone. Because it’s federally insured, PLUS
doesn’t require your
home, or any of your other assets, as security. And the very fact it’s a
loan means you’re
not dipping into retirement funds, or selling your investment portfolio
to raise needed cash.
- Your PLUS Loan is secure. A 3% fee gives PLUS a federal guarantee. None
of us wants to think anything can happen to us, but in the unlikely event you should
lose your life or
become totally disabled, your family and your estate are protected. The
PLUS Loan will be
paid off by a guarantee agency, acting as an agent for the federal
government.
Next Page
|
|
|
